Crediteuren

Payables are obligations a company owes to its suppliers or creditors for goods and services received but not yet paid for.

They are recorded as liabilities on the balance sheet, reflecting the company's obligation to pay in the future.

Payables are usually short-term, meaning they must be paid within one year.

The most common type is Accounts Payable. It indicates the amount the company owes its suppliers.

Other types include wages payable, which is money owed to employees, and taxes payable, which is money owed to the government.

For example, consider Fresh Foods, which buys vegetables worth five thousand dollars from a supplier on credit.

Fresh Foods does not pay immediately but promises to pay in thirty days. On its balance sheet, Fresh Foods will list five thousand dollars under Accounts Payable as a current liability.

A clear understanding of payables helps assess a company's short-term financial health and liquidity.